Italy Economy Profile 2009

Economy - overview

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system and these conditions will be exacerbated by the recent global financial crisis. The Italian government is seeking to rein in government spending, but the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the fiscal deficit - 1.5% of GDP in 2007 - could approach 3% in 2009 as political pressure to stimulate the economy and the costs of servicing Italy's debt rise. The economy will continue to contract through 2009 as the global demand for exports drop.

GDP (purchasing power parity)

$1.823 trillion (2008 est.)
$1.841 trillion (2007 est.)
$1.814 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$2.314 trillion (2008 est.)

GDP - real growth rate

-1% (2008 est.)
1.5% (2007 est.)
2.1% (2006 est.)

GDP - per capita (PPP)

$31,300 (2008 est.)
$31,700 (2007 est.)
$31,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2%
industry: 27%
services: 71% (2008 est.)

Population below poverty line

NA%

Labor force

25.11 million (2008 est.)

Labor force - by occupation

agriculture: 4.2%
industry: 30.7%
services: 65.1% (2005)

Unemployment rate

6.8% (2008 est.)
6.2% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.3%
highest 10%: 26.8% (2000)

Distribution of family income - Gini index

32 (2006)
27.3 (1995)

Investment (gross fixed)

20.9% of GDP (2008 est.)

Budget

revenues: $1.068 trillion
expenditures: $1.132 trillion (2008 est.)

Public debt

105.9% of GDP (2008 est.)
105.6% of GDP (2004 est.)

Inflation rate (consumer prices)

3.4% (2008 est.)
1.8% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Commercial bank prime lending rate

NA% (31 December 2008)
10.93% (31 December 2007)

Stock of domestic credit

$2.897 trillion (31 December 2008)
$2.932 trillion (31 December 2007)

Industries

tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics

Industrial production growth rate

-2.8% (2008 est.)

Electricity - production

292.1 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 78.6%
hydro: 18.4%
nuclear: 0%
other: 3% (2001)

Electricity - consumption

316.3 billion kWh (2006 est.)

Electricity - exports

1.916 billion kWh (2007 est.)

Electricity - imports

34.56 billion kWh (2007 est.)

Oil - production

166,600 bbl/day (2007 est.)

Oil - consumption

1.702 million bbl/day (2007 est.)

Oil - imports

2.223 million bbl/day (2005)

Oil - exports

616,700 bbl/day (2005)

Oil - proved reserves

406.5 million bbl (1 January 2008 est.)

Natural gas - production

9.706 billion cu m (2007 est.)

Natural gas - consumption

84.89 billion cu m (2007 est.)

Natural gas - exports

68 million cu m (2007 est.)

Natural gas - imports

73.95 billion cu m (2007 est.)

Natural gas - proved reserves

94.15 billion cu m (1 January 2008 est.)

Current Account Balance

-$78.03 billion (2008 est.)
-$51.03 billion (2007 est.)

Agriculture - products

fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish

Exports

$546.9 billion (2008 est.)
$502.4 billion (2007 est.)

Exports - commodities

engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals

Exports - partners

Germany 12.8%, France 11.2%, Spain 6.6%, US 6.3%, UK 5.3% (2008)

Imports

$546.9 billion (2008 est.)
$498.1 billion (2007 est.)

Imports - commodities

engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco

Imports - partners

Germany 16%, France 8.6%, China 6.2%, Netherlands 5.3%, Libya 4.6%, Russia 4.3% (2008)

Reserves of foreign exchange and gold

$105.3 billion (31 December 2008 est.)
$94.33 billion (31 December 2007 est.)

Debt - external

$2.328 trillion (31 December 2008)
$2.5 trillion (31 December 2007)

Stock of direct foreign investment - at home

$376.6 billion (31 December 2008 est.)
$364.8 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$565.3 billion (31 December 2008 est.)
$520.1 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$1.073 trillion (31 December 2007)
$1.027 trillion (31 December 2006)

Economic aid - donor

ODA, $3.641 billion (2006)

Currency (code)

EUR

Currency (code)

euro (EUR)

Exchange rates

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year

calendar year